Amendments in Defence Acquisition Procedure 2020 get the nod to promote procurement of advanced technologies from Start-Ups & MSMEs

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The Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Shri Rajnath Singh, accorded approval for Acceptance of Necessity (AoNs) for various capital acquisition proposals amounting to Rs 84,560 crore. In the true spirit of ‘Aatmanirbharta’, the approvals accorded on February 16, 2024 lay special emphasis on procurement of various equipment from Indian vendors.

The DAC has accorded AoN under Buy {Indian-Indigenously Designed Developed and Manufactured (IDDM)} category for procurement of a new generation of Anti-tank mines having seismic sensor and provision of remote deactivation with additional safety features. In order to enhance the operational efficiency and domination in the Tactical Battle Area for engaging targets that are Beyond Visual Line of Sight by the Mechanised Forces, the AoN under Buy (Indian-IDDM) category has been accorded for procurement of Canister Launched Anti-Armour Loiter Munition System.

Further, to strengthen the Air Defence Systems, especially the capabilities to detect slow, small and low-flying targets as well as surveillance, detection & tracking of different targets, the AoN has been accorded for procurement of Air Defence Tactical Control Radar under Buy (Indian-IDDM) category.

The AoN for procurement of Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft, through Buy and Make category, has been granted by the DAC for strengthening the surveillance and interdiction capabilities of the Indian Navy and the Indian Coast Guard (ICG) over the country’s vast maritime area.

Further, to keep the Indian Naval Ships one step ahead of the threats posed by the adversaries, the AoN under Buy (Indian) category has been accorded for procurement of Active Towed Array Sonar having capabilities to operate at low frequencies and various depths for long range detections of adversary submarines. The AoN has also been accorded for procurement of Heavy Weight Torpedoes for enhancing the attacking capabilities of Kalvari Class submarines. The AoN for sustainment support through Follow On Support (FOS) and Repair Replenishment support through Follow On Supply Support (FOSS) for 24 MH60R aircraft under Foreign Military Sale route with the US Government has also been accorded.

The DAC accorded AoN for procurement of Flight Refueller Aircraft for enhancing the operational capabilities and reach of the Indian Air Force. The AoN under Buy (Indian-IDDM) category for procurement of Software Defined Radios for the ICG has also been granted. This will fulfill the requirement of the ICG for having a high-speed communication with secure networking capability for seamless information exchange between the ICG and the Indian Navy units.

To create a friendly defence start-up ecosystem and promote procurement of Advanced technologies from start-ups and MSMEs developed under the Innovations for Defence Excellence (iDEX) and Technology Development Fund schemes, the DAC has approved amendments in the Defence Acquisition Procedure (DAP) 2020 w.r.t. benchmarking and cost computation, payment schedule, procurement quantity etc. This will provide the much-needed incentive along with a supportive business environment for the start-ups and MSMEs under iDEX and TDF schemes, truly in the spirit of ‘Ease of Doing Business’.

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